Last week American Express updated their popular Gold card. This has been one of my favorites since I got it six years ago, and it has remained in my wallet since then. One of the main reasons this card is popular in the points and miles world is the high rewards earnings on popular categories that are a large slice of everyone’s budget – grocery and dining! Today I am going to review the card, the new updates and then give my verdict if the card is still worth it.
Let’s begin with the bad news. The annual fee for this card is now $325 per year which is a 30% increase compared to the previous annual fee of $250. Annual fee cards can have a bad reputation, but in many instances the fees can be offset with some of the card benefits depending on if you find them useful. In recent years American Express has raised annual fees on their products but have also added more benefits. In fact, their CEO specifically mentioned refreshing over 40 products in the coming year. This strategy has been profitable for the company so we can likely expect this to continue in the future.
When I am doing an assessment of a card with an annual fee I always weigh the annual fee against the benefits that I know I’ll use in my everyday life. The overall goal is to get to what I refer to as Net Zero. How I do this is start with the total annual fee and then begin subtracting the benefits that I’ll use off the annual fee. If I end at zero or even a negative number then I know the card is a good fit for me because I am extracting more benefits than what the card is costing me each year. If I am above Net Zero after doing my calculations then I need to assess to see if the card is worth a spot in my wallet. If I am far from zero, then I usually do not get the card. I am going to incorporate this method into my review so we can take a look at them together.
Welcome Offer
The new welcome offer on the card is now 60,000 Membership Rewards plus 20% back in statement credits on dining purchases up to $100. To receive the welcome offer bonus you will need to spend $6,000 on the card in the first six months of membership.
While this is a great bonus there are often ways to search for an elevated welcome offer. One way is to open a web browser in incognito mode and navigate to the American Express website. When I use this method I see the welcome offer for the American Express Gold card is now 100,000 Membership Rewards points with the same dining credits. The $6,000 minimum spend offer is also the same.
Tip: If you do not see this offer by doing incognito mode, clear your browser history and cookies and try again. It is also worth trying a different browser on your computer, or a different device altogether. If you have a VPN it may also be worth changing your location a few times.
As always, please do not spend money on anything you do not need just to earn the welcome offer. I am a big advocate for financial responsibility and do not believe anyone should make excess or unwanted purchases they may not be able to afford. Check out my post on how to meet the spend requirement on bonuses without unwanted spending.
NEW BENEFIT: Monthly $7 Dunkin credit, total $84 per year
The first new benefit of the American Express Gold card is a monthly $7 Dunkin credit. These small monthly credits are a nuisance to some cardholders as American Express keeps adding these into all of their products, however, if you regularly go to Dunkin then this is an easy way to offset up to $84 of the annual fee. The key is to remember this is a monthly credit and it does not carry over to the next month. Card members will also need to go to the benefits page of American Express and click to enroll to receive the credit. I did this on the first day and received a warning message that it may take up to 24 hours to take effect.
Dunkin is not a place I go to often however after reviewing their menu I realized I will be able to make use of this credit. While I love coffee I don’t typically buy it often and choose to make my own at home so initially I thought I would not value this benefit. I was surprised to find several food items on the menu beyond donuts, including breakfast sandwiches and wraps. I have a Dunkin close to my office at work so for me this will be an easy way to redeem the credit since I buy lunch when I’m at work. (My meal-prep habit went out the window now that I’m hybrid at my day job and only go to work a few times each month.)
Tip: Download the Dunkin app to order and then pick up to earn Dunkin rewards. It is nice to not have to wait in line. While the rewards platform doesn’t appear overly robust it is a low effort way to earn rewards for free Dunkin items if you are already going at least once per month.
Net Zero Calculation: $325-$84=$241
NEW BENEFIT: Semi-annual $50 Resy credit, total $100 per year
The next new benefit is also related to dining. Resy is a dining app owned by American Express that allows users to book reservations at restaurants listed on the platform. Currently there are over 16,000 restaurants on Resy so I suggest looking at their website to see how many restaurants are in your area and if these are restaurants that you would enjoy.
Like the Dunkin benefit users will need to click to enroll on their American Express Gold card benefits page before taking advantage of it. I recommend downloading the Resy app and creating an account. This is an easy way to see the current restaurants on the platform. Naturally there are more choices in larger cities, however I have been surprised to find restaurants on the platform in less populated areas as well. You do not need to book a reservation on the app to take advantage of the credit. The only requirement will be paying with your Gold card at a restaurant that is listed on Resy.
At first I wasn’t thrilled with this new benefit but there are more restaurants on Resy now than there used to be. Hopefully the list will continue to grow. There is enough selection in my area, and various cities that I frequent that I’ll be able to use this credit at full value each year. The benefit is split at $50 each from January through June, and then July through December. I always recommend not waiting until the last few days of the time period for any benefit that has a time component.
Net Zero Calculation: $325 (annual fee)-$100(Resy)-$84(Dunkin)=$141
MODIFIED BENEFIT: $10 monthly dining credit, total $120 per year
The monthly dining credit will remain the same, but with a lineup change in the partners. Goldbelly, Grubhub, The Cheesecake Factory, and Wine.com will remain. Shake Shack and Milk Bar will be removed and replaced with Five Guys. If you are a new cardmember you will need to click to enroll to receive this monthly benefit. A $10 credit will be issued after making a purchase from one of the dining partners.
I typically use mine for Grubhub and do a pick up order to save on fees. I have never used the other dining partners, but I welcome the change as I am more likely going to go to Five Guys than Shake Shack. Since I do pick up orders and try to order from restaurants that do not inflate their menu prices on the app I value the credit at a full $120.
Net Zero Calculation: $325 (annual fee)-$120(Dining)-$100(Resy)-$84(Dunkin)=$21
EXISTING BENEFIT: $10 monthly Uber Cash, total $120 per year
The $10 monthly Uber Cash benefit remains the same. Uber Cash is good for any of Uber’s services, not just rides. Just like the other three benefits you will need to click to enroll if you are a new cardmember, and remember this is a monthly credit. The Uber Cash will be removed from your Uber account if you do not use it by the end of the month.
Personally I have always redeemed my cash on Uber Eats. It is a great way to make use of the credit if you are not a regular Uber rider. Similar to Grubhub I recommend ordering for pickup to avoid delivery fees, and do some menu comparison for restaurants that may inflate their menu prices. Check out these additional tips on how to maximize the dining and Uber Cash benefits on the Gold card. Because I have found various methods of reducing the cost of Uber Eats I value the credit at full face value.
Net Zero Calculation: $325 (annual fee)-$120 Uber Cash-$120(Dining)-$100(Resy)-$84(Dunkin)=-$99
Membership Rewards Earning Structure
In addition to all the credits that help offset the annual membership fee there is also a great rewards earning structure! One of the main selling points of this card are the high earnings on common categories:
4x on restaurants worldwide up to $50,000 per year (the spending cap is new, however most of us likely do not spend this much a year on dining – if you do, let’s be friends!)
4x on U.S. supermarkets up to $25,000 per year
3x on flights booked directly with airlines or on amextravel.com
2x on prepaid hotels booked on amextravel.com
1x on all other spend
Restaurants and supermarkets are two of my largest expenses each month so this is one of my favorite earnings structures of all of my credit cards. I’ve been able to earn tons of Membership Rewards points each year on the 4x categories.
Tip: Get your prescriptions filled at your supermarket if it has a pharmacy and see if the transaction codes as a supermarket. Mine does, so when I had to take care of a health issue last year I was able to earn 4x on my prescriptions. I was spending several hundred per month on medicine so the 4x earnings made the expense just a tad less painful.
Final Thoughts
The updated American Express Gold card still makes sense for my wallet and in my estimation, an even more valuable card now. The old $250 fee version of the card left me with a Net Zero calculation of $10. I was able to recoup the remainder of the fee through Amex Offers and by swiping the card for all my supermarket and dining purchases. Now the card provides a Net Zero value of -$99! If you are able to take advantage of the statement credits in your normal course of spending throughout the year this card is a no-brainer!